Asia Gasoline/Naphtha-Cracks at one-and-half week low

SINGAPORE, Nov 4 (Reuters) - Asia's naphtha prices rose to
their highest in a week on Wednesday, while cracks fell to their
lowest in about one-and-half-week due to muted spot trade, as
the Asia Pacific Petroleum Conference (APPEC) drew traders away.

Russia's No. 2 oil producer LUKOIL will expand its trading
business in this region, especially naphtha and fuel oil, by
first-half of 2010, said Litasco CEO Gati al-Jebouri on the
sidelines of the conference in Singapore. [ID:nSP535946].

In term talks, Taiwan CPC has accepted ADNOC's term price
for splitter naphtha lifting January-December 2010 at a premium
of $14.50 a tonne to ADNOC's price formula on a free-on-board
(FOB) basis.

It has also accepted Kuwait's offer at $14.00 a tonne
premium to Middle East quotes on a FOB basis for supplies
loading December 2009-November 2010. [ID:nSP546341].

"The rest of the buyers will now have to follow the lead
from CPC. Initially, some were hoping that they could close the
KPC deal at around $12.00 a tonne," said a trader.

Japanese Mitsubishi Corporation however no longer holds the
December-November KPC contract, where it previously held some
100,000-150,000 tonnes of full-range naphtha for the 12-month
period. [ID:nSP539512]

Marubeni also no longer has the December-November contract
with Kuwait, which started its aromatics plant after months of
delay. [ID:nSP434155].

The plant is now operating at 60 percent capacity, and is
expected to reach full-tilt in the first week of December.
[ID:nL300450].

As for gasoline, cracks narrowed by half to settle at their
lowest in two weeks, as ample supplies persisted.

Demand in the United States was down 0.4 percent to 9.311
million barrels per day in the week ended Oct. 30.
[ID:nNYS007496].

* JAPAN OPEN-SPEC NAPHTHA NAF-1H-TYO: Prices for
second-half December rose $14.00 to $684.00 a tonne, highest
since Oct. 28.

* BACKWARDATION/CONTANGO: The intermonth values between
second-half December and second-half January remained at $4.00 a
tonne for the fifth straight session.

* CRACK SPREAD: Cracks -- the profits or losses of refining
Brent crude into naphtha -- fell $1.45 to $97.05 a tonne, lowest
since Oct. 26.

* NAPHTHA CASH DEALS: No deals resumed after a drought for
three straight sessions.

- Glencore sold a first-half January cargo to Itochu at
$682.00 a tonne.

* NAPHTHA TENDERS: Outstanding tenders include IOC's offer
for 35,000 tonnes for Nov. 29-Dec. 2 lifting from Chennai and
30,500-31,500 tonnes for Nov. 28-30 loading from Dahej.

- The tender closes on Nov. 9.

- HPCL also has a tender to sell 15,000 tonnes of the
feedstock for end November lifting from Mumbai. [ID:nSP466130].

- BPCL issued two separate tenders to sell a total of 57,000
tonnes of naphtha for second-half November lifting from Kochi
and Mumbai. [NAP/TENDA].

* REFORMING MARGINS: Gasoline's premium to naphtha
GL92-SIN-DIF fell $1.23 to $5.19 a barrel.

* GASOLINE CRACKS: Crack spreads -- premiums/losses obtained
from refining Brent crude into the autofuel -- dropped $1.71 to
$1.34 a barrel.

* GASOLINE TRADES: Total sold a 92-octange grade for Nov.
19-23 lifting to Trafigura at $79.60 a barrel.
DEC09 NAPHTHA NAF-1H-TYO 683.50/684.50 670.00 +14.00
SPOT NAPHTHA NETBACK NAF-SIN 74.36/74.46 72.83 +1.58
DEC NAPHTHA SWAPS NAF-1M-S 73.80/74.00 72.35 -1.55
JAN NAPHTHA SWAPS NAF-1M-S 73.45/73.65 72.00 -1.55
SPOT GASOLINE 97 UNL GL97-SIN 84.65/84.75 84.35 +0.35
SPOT GASOLINE 95 UNL GL95-SIN 81.32/81.42 81.00 +0.37
SPOT GASOLINE 92 UNL GL92-SIN 79.55/79.65 79.25 +0.35
SPOT 92RON/NAF GL92-SIN-DIF 5.14/5.24 6.42 -1.23

(Reporting by Seng Li Peng; Editing by William Hardy)